It’s only a matter of time before Bitcoin takes over the world… literally. After years of wondering whether or not Bitcoin would stay around, it’s starting to mold itself into one of the leading solutions for doing business across international borders. What started out as pseudo interest by a select group of people is poised to become a major player in the world market. In this blog post, Coin Cloud explores the role that Bitcoin plays in international trade.
Introduced in 2009 by Satoshi Nakamoto, Bitcoin has become the largest and most-used cryptocurrency out there. It’s like the mother of all cryptocurrencies. Bitcoin can be bought and sold online using your debit/credit or bank account information or through a Bitcoin ATM using cash. There are several benefits to using a Bitcoin ATM over an online exchange.
The technology that makes Bitcoin possible is Blockchain, which allows people to engage in financial transactions without the need for a middleman. These are called peer-to-peer transactions.
Bitcoin has already shaken up the US market and is ready to do the same in the world market.
In the already complicated and highly-regulated world of international trade, Bitcoin (and other cryptocurrencies) provides a breadth of benefits for businesses:
● Trade with the same currency no matter where you are in the world. One of the biggest challenges when engaging in international trade is having to deal with different currencies. Different currencies with different exchange rates just adds to the already complicated process of buying and selling products abroad. With Bitcoin, this is no longer an issue; Bitcoin provides everyone in the world with one single currency. For example, a small artisan leather maker in Patagonia can sell his products to a leather distribution company in Los Angeles without having to worry about the difference in currency, exchange rates, etc. This makes international trade simpler and evens the playing field for all players involved.
● No more long waiting times. Sending and receiving money from abroad can take days to receive. With Bitcoin, buyers and sellers can send and receive money almost instantly. For a nation whose banking system is slow and inefficient, Bitcoin provides a great solution to overcome those obstacles.
● Don’t worry about failed payments. One of the biggest risks when dealing with international suppliers and buyers is payments bouncing back and not having the resources or access to make sure that you receive your money. A lot of businesses have been scammed by foreign buyers and sellers for this reason. With Bitcoin, this isn’t an issue. A business must have the money already in an account before a Bitcoin transaction to go through. As a result, the possibility of transactions being cancelled is removed, making international trade less risky for businesses.
● No transaction fee. This is one of the main benefits that Bitcoin brings to international trade. When dealing with a third party such as a bank, businesses can end up paying extremely high transaction fees just to have their money sent to and received from international buyers and suppliers. With blockchain enabling peer-to-peer transactions, purchases made with Bitcoin are free of transaction fees. This allows business owners to keep more money in their pockets.
● Your business will have a secured record of all transactions. Tracking orders across international borders can get really messy. Sure, there are softwares in place that attempt to simplify this process but a lot of these softwares are still subject to manipulation. With Bitcoin and blockchain, all transactions that go in and out of your business will be secured and verified. Blockchain doesn’t allow data to be manipulated so you can count on all transactions being accurate and up-to-date.
While Bitcoin and its influence on international trade is still in its infancy, we’re certain that it’ll play an important role in the future of international business. International trade is a multi-trillion dollar industry which requires a financial system that is guaranteed and secure. Bitcoin may not be 100% there yet but as the technology continues to stabilize, we are sure that Bitcoin will find its way onto the world stage. It’s only a matter of time before Bitcoin takes over the world.
If you have a business, find out the benefits of hosting a Coin Cloud Bitcoin ATM.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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